BELFAST — The European Commission (EC) formally approved a strategic document aligned to the European Defence Industry Programme (EDIP) today, aimed at increasing regional and Ukrainian weapons production alongside lucrative investment in joint procurements.
Laying out how the €1.5 billion ($1.7 billion) in funding will be spent after adopting a “work programme,” the EC — which dictates and oversees European Union law, policy and budgeting — said in a statement that more than €700 million will go toward increasing production of weapon systems including counter-drone technology, missiles and ammunition. Within this allocation, €260 million will be held by the Ukraine Support Instrument (USI) that sits under EDIP, to “help rebuild and modernise” Kyiv’s defense industrial base through collaborative efforts, noted the statement.
A further €325 million is to be handed out to the European Defence Projects of Common Interest (EDPCI) to spur the launch and implementation of joint industry projects. EDPCI funding is open to European Union members, Norway and Ukraine.
Additionally, in a bid to “reduce fragmentation and boost efficiency,” EDIP will put up €240 million for another wave of joint procurement covering counter-drone, air and missile defense systems, alongside ground and naval warfare systems. The funding is open to EU members and Norway only and comes with a €20 million grant cap per project.
Elsewhere, defense start-ups will receive “equity support” valued at €100 million collectively as part of the Fund Accelerating Defence Supply Chains Transformation project. At the lower end of the funding scale, just over €35 million of EDIP USI funds will be dedicated to a new defense innovation program. Around €100 million from the headline €1.5 billion figure in the statement is unaccounted for.
The EDIP covers funding for 2026 through 2027 with a first round of calls for proposals opening on the EU’s tender portal starting on Tuesday, according to the EC.
Adoption of the EDIP work program comes as European Commissioner for Defence and Space Andrius Kubilius embarks on a “missile tour” across the continent to drive home the need for manufacturers to increase production and speed deliveries of missiles, for both Ukraine and in order to replace EU stockpiles.
Earlier this month, Kubilius called for “independent missile production in Europe,” framing a shortage of air defense and anti-ballistic missiles as “the biggest deficit” during a speech at the Forum Europa.
He made the case for achieving such an ambition by arguing the US and its allies reportedly expended more than 800 Patriot missiles over five days during the beginning of the Iranian conflict. He claimed “public sources” have disclosed Patriot production stands at 750 units a year.
“Innovative Ukrainians are planning to develop their own anti-ballistic defence system, maybe together with European partners,” he added. “We are working on that.”
He also stressed at the time that to produce a European made air-defense system “with a strong anti-ballistic component, we first need to learn how to overcome fragmentation, and how to be successful in the development of pan-European defence flagship projects.”
His message echoes that of NATO Secretary General Mark Rutte who has said Europe needs to increase regional air-defense capabilities by 400 percent.
